Canopy Growth Inks Offtake Deal with PharmHouse

Canopy Growth (NYSE:CGC,TSX:WEED) signed an offtake agreement with PharmHouse, a partly owned joint venture of its subsidiary Canopy Rivers (TSXV:RIV,OTC Pink:CNOPOF).

As quoted in the press release:

Under the terms of the agreement, PharmHouse has agreed to allocate high quality cannabis flower from an additional 20 per cent of the flowering space available at its Leamington greenhouse facility over the next three years.

PharmHouse will leverage Canopy Growth’s genetics – selected and supplied by the Company – and flower will be returned to the Company to be sold under Canopy Growth’s diverse brands and banners. Under the terms of the new offtake agreement, PharmHouse is committed to producing GMP-certified, high quality cannabis flower within 18 months of its cultivation license and the flower must comply with the Company’s high standards for cannabis quality. GMP, or Good Manufacturing Practices, certification is the internationally recognized system to ensure all produced goods meet the highest consumer health and safety standards, allowing the Company to export the flower to its international divisions. Including this new agreement, 30 per cent of PharmHouse’s total flowering space has been committed to Canopy Growth.

“We have witnessed Canopy Rivers and its joint venture partner pour their hard work into the PharmHouse facility in Leamington and couldn’t be more satisfied with how it has turned out,” said Bruce Linton, Chairman & Co-CEO of Canopy Growth Corporation and Chairman & CEO of Canopy Rivers.

Click here to read the full press release.